Singha Estate Public Company Limited reported revenue of 3,008 million baht in Q1 2022, a 130% increase compared to the same period in 2021. This growth was driven by revenue increases across all business segments, despite the ongoing challenges posed by the COVID-19 pandemic affecting various industries. This reflects the success of the company's restructuring efforts over the past two years, focusing on a diversified investment strategy to create synergy among its four interconnected business segments, which is expected to nearly double revenue in 2022, aiming for a new high for the company.

Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited, or 'S'

The increase in total revenue was primarily due to the outstanding performance of the hotel business segment, which reported sales and service revenue of 1,690 million baht, more than tripling compared to the same period last year. This was a result of full-quarter revenue recognition from the hotel portfolio in the United Kingdom, underscoring a significant achievement from last year's portfolio adjustment. This was further supported by the continued strong performance of both hotels in the CROSSROADS Phase 1 project in the Maldives, which had an occupancy rate exceeding 70% earlier this year. Additionally, the average daily room rate increased by over 7% to $449 per room per night, resulting in the highest average revenue per room since the hotels opened. Furthermore, the company has begun to see an improving trend in hotels in Thailand and the Outrigger hotel following the reopening of the country, leading to a 28% revenue growth in Q1 2022 for both portfolios compared to the previous quarter, signaling positive future revenue growth as countries lift restrictions on foreign tourists and flight services return to normal.

Similarly, revenue from the residential business in Q1 2022 grew by 110% year-on-year to 1,024 million baht, driven by successful condominium transfers from The ES Singha Complex and The ES Asoke projects. For the remainder of the year, the company anticipates an acceleration in the transfer of ownership for the Santhiburi The Residences project, bolstered by revenue recognition from new single-detached houses planned for launch mid-year, which is expected to contribute to a 50% increase in residential business revenue in 2022.

Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited, or 'S' revealed that Singha Estate aims to launch new residential projects over the next three years with a total value of 26,400 million baht, marking the highest launch in the company's history. To align with this aggressive launch plan, the company has allocated a total investment budget of over 20,000 million baht over three years. In 2022, the company plans to introduce a new series of single-detached houses mid-year to penetrate the low-rise market in more diverse locations and cover a broader range of price points, starting from 100 million to 10 million baht per unit. The company believes that the upper to high-class housing market aligns well with its expertise, with the first project set to launch in the Pattanakarn area, valued at approximately 2,900 million baht.

Amid the challenges in the office building sector, the company has managed to maintain an overall average occupancy rate of 87% through strategic location management, balanced client portfolio management, property modernization, and the introduction of new business models to meet changing tenant demands.

Additionally, Singha Estate plans to lease 2-3 more premium office buildings and retail spaces, including Singha Complex S Metro and Sun Towers, to the SPRIME Real Estate Investment Trust to align with the company's portfolio management strategy, which involves recycling capital to strengthen financial stability and support continuous business expansion, aiming to position SPRIME as the number one office building trust.

In 2022, the industrial estate and infrastructure business will recognize revenue from land sales and transfers for the first time after investing in land development and constructing public utilities. The company aims to transfer approximately 15% of the saleable area in the industrial estate, covering around 992 rai, while also recognizing revenue from B.Grimm Power (Ang Thong) 1 Co., Ltd., which operates a combined heat and power plant with a capacity of 123 megawatts for the first full year.

This year marks another significant step in creating synergy among the four business segments, linking opportunities and expanding new business ventures to strengthen the company's portfolio, positioning Singha Estate as a leading player in Thailand while developing new business models in collaboration with various partners to foster sustainable growth, aiming for an average revenue growth of 25% per year over the next five years.